According to All Things D, Microsoft is expected to unveil a major restructuring on July 1st.
CEO Steve Ballmer seems to have been planning this re-organization only with a small group of direct reports and some board members, leaving the larger group of leadership executives out of the loop. According to All Things D's source:
“It feels like it is going to be titanic — that Steve is doing this change for his legacy,” said one person close to the situation. “And it’s the first time in a long time that it feels like that there will be some major shifts, including some departures.”
The new Microsoft would apparently be structured around four major divisions; enterprise, hardware, applications and services, and operating systems. The Verge's sources have revealed that the restructure will see "a significant focus on further aligning the Windows and Windows Phone operating systems."
Steve Ballmer took over as Microsoft CEO in 2000, and while there have been public departures under Ballmer's reign as CEO, such as Windows chief Steven Sinofsky, Microsoft veterans Robbie Bach and J Allard, there hasn't been a major reorg since 2008, just before the launch of Windows 7. Microsoft will be holding its Build conference in San Franciso this week, where it will be showing - among other things - a preview of Windows 8.1.